Collins Company, organized in 2001, has these transactions related to intangible assets in that year:

Jan. 2 Purchased patent (7-year life), $420,000.

Apr. 1 Goodwill purchased (indefinite life), $360,000.

July 1 Acquired 10-year franchise; expiration date July 1, 2011, $450,000.

Sept. 1 Research and development costs, $185,000.

Instructions Prepare the necessary entries to record these intangibles. All costs incurred were for cash.
Make the entries as of December 31, 2001, recording any necessary amortization and indicating what the balances should be on December 31, 2001.